Australia is finalizing an agreement with ANZ Group to retain the bank’s Pacific branches, a strategic move designed to support regional financial stability amid rising competition from China. This arrangement comes as Pacific Island nations face significant reductions in banking access due to closures by Western banks. In particular, ANZ’s Pacific network, the largest in the region, has struggled with profitability, prompting discussions about its future that began as early as July. ANZ’s CEO Shayne Elliott highlighted that government support was essential for maintaining the bank’s operations in these remote locations.

The agreement, announced by Treasurer Jim Chalmers, will safeguard ANZ’s nine key hubs across the Pacific, including in Fiji and the Cook Islands, and aims to sustain financial connectivity in the region. Chalmers noted that this initiative aligns with Australia’s broader diplomatic goals to ensure financial inclusion and stability. As China increases its influence in the Pacific through defense, trade, and financial agreements with island nations, such as the Bank of China’s recent partnership with Nauru, Australia’s efforts seek to counterbalance this by reinforcing Western-backed financial services in the area.